Queensland and NT Reject Australia’s Data Centre Energy Rules
Australia’s world-first data centre rules need every state to agree. Two just said no.
Key Takeaways:
- Unanimity Required: The proposed national environmental and energy controls for Australia’s A$150 billion data centre pipeline require unanimous support from all states and territories.
- Initial Opposition: Queensland and the Northern Territory opposed most of the measures, including a national rulebook.
- Policy Objectives: New data centres would need to add as much electricity generation to the grid as they consume, build renewable generation, minimize water use, maximize energy efficiency, and fund additional water infrastructure.
- Investor Attractiveness: Queensland Premier David Crisafulli expressed concern that imposing renewable power requirements could negatively impact the state’s attractiveness to investors.
- Industry Support: The industry group Data Centres Australia supports the principle of backing new electricity demand with new supply but seeks clarity on compliance obligations and measurement methods.
- Public Opinion: A YouGov survey found 82% of Australians agree that new data centres should pay for extra renewable energy and storage infrastructure needed to meet their power demand.
Why Queensland Objects:
Rob Nicholls, a senior researcher at the University of Sydney’s Centre for AI, Trust and Governance, stated: "The policy the PM has announced doesn’t work unless there’s buy-in from all the states and territories… Part of the reason you have a policy is to avoid a race to the bottom from the states."
Industry Questions:
Belinda Dennett, chief executive of Data Centres Australia, highlighted three key questions:
- Who bears the compliance obligation: the operator or tenant?
- When does it take effect?
- Whether the offset is measured against actual electricity consumption or nameplate capacity, which could significantly alter the size of the obligation.